“Despite massive measures taken around the world, uncertainty about future labor market developments is high because the risk of new epidemics is high,” said Stefano Scarpetta, OECD Director for Employment, Labor and Social Affairs. “A lot of what will happen depends on the evolution of the pandemic.”
High-wage workers were 50% more likely to work during the house than graduation, and low-wage workers during closure, the OECD said, while women, who are more often employed in the combat sectors, were more severely affected than men.
In the most optimistic scenario, where the virus continues to fade and remain under control, the agency predicts that unemployment will average 9.4% in OECD countries by the end of 2020 – the worst reading since the Great Depression – before falling to 7.7% at the end of 2021. At the end of 2019, before Covid-19 hit, the unemployment rate in OECD countries was 5.3%.
The outlook worsens in the event of a second wave of infections later this year. The OECD estimates that unemployment would then rise to 12.6% before falling to 8.9% in 2021.
Why it matters: The warning comes as governments discuss how to expand or modify costly benefits for jobless and struggling companies, which has so far been crucial in protecting some positions.
The Trump administration on Monday released data on approximately 4.8 million small businesses that took advantage of more than $ 520 billion in loans through its $ 3 trillion payroll protection program, deployed in March.
The program was so critical in its infancy that the first round of funding dried up in less than two weeks. But interest rates have recently eased as policy changes and the inability of borrowers to repay for another loan are limited.
Europe’s response: The OECD has noted that part-time work programs, which encourage employers to keep workers paid even if they do not work full time, have been extremely successful in curbing unemployment in countries like Germany, helping an estimated 60 million people. the situation remains ongoing.
The European Commission on Tuesday downgraded its economic outlook for 19 countries using the euro, forecasting a decline of 8.7% in 2020 and growth of 6.1% in 2021. This is a big change from the previous forecast, which the eurozone economy decreased 7.7% this year. This was also reconciled with stronger growth in 2021.
Look at this space: The OECD said that almost half of all jobs “require frequent interactions,” putting workers at risk of infection as farms reopen. The agency stressed that this means that governments and companies must prioritize workplace safety and guarantee “extensive” paid sick leave in order to stay in touch with the infection in the coming months.
TikTok is leaving Hong Kong
“In light of recent events, we have decided to suspend the TikTok application in Hong Kong,” a TikTok spokesman confirmed to CNN Business.
It is unclear when TikTok – which is owned by Beijing-based startup ByteDance – will leave Hong Kong, and what this will mean for users of the app in the city.
Beijing imposed last week, the law criminalizes secession, subversion, terrorism and deals with foreign powers. It marks a major change that critics say is an attack on freedom of speech and press that has long existed in Hong Kong but is banned in mainland China.
On the radar: As technology companies struggle to devise the next steps, TikTok is poised to become a major source of tension between Washington and Beijing.
People should download TikTok “only if they want their private data in the hands of the Communist Party of China,” Pompeo said in an interview with Fox News.
Palantir files for the highly anticipated IPO
Palantir Technologies, the secret data company Silicon Valley, will soon become a little more transparent, my CNN Business colleague Charles Riley reported.
The company said in a brief statement Monday that it had begun a confidential process of listing its shares after the SEC completed its audit.
Palantir has not released any financial information or further details about its plans for listing. But the move provokes a long-awaited IPO and envisions the release of more information about the narrow-minded company, which has long been the subject of speculation among technology investors.
What we do know: Founded more than 15 years ago by heavyweight technicians, including renowned investor Peter Thiel and Alex Karp, its CEO, Palantir has worked with U.S. government agencies like the CIA and FBI, making money by weaken the shadow and reputation estimates of approximately $ 20 billion.
However, relatively little is known about the company’s business. Palantir advertises its ability to manage and protect data in huge quantities, but says little about which corporations or governments buy its services.
More transparency: The public will eventually demand that Palantir disclose additional information about its business. But the chosen route to the IPO will be kept in the form of blockbuster details for a long time. The confidential IPO filing process allows a company to privately file its registration statement, known as S-1, with the SEC for review.
This allows it to keep sensitive data out of the hands of competitors, buyers and investors until it is ready to list its shares.
Following
Tomorrow: British Chancellor Rishi Sunak unveils new measures to support the British economy. The OECD has predicted that the United Kingdom will get the biggest hit among large economies this year due to the coronavirus pandemic.
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